Updates from December, 2016 Toggle Comment Threads | Keyboard Shortcuts

  • eurfi 11:27 on 2016-12-09 Permalink | Reply  

    My last free day – how did I spent it? 

    Today is my last free day. From next year on, I will go back to full-time work. This year I was working some months only 3 days a week and most months 4 days a week.

    And today is my last free day (with at least a few unplanned hours) – how did I spent it? Inspired by a reader comment I started looking at my yearly income minus my yearly expenses. I will post more details about this in the beginning of 2017, when the final numbers for 2016 are in. But there were some interesting insights already: In the last three years (2014 – 2016) we would have covered all our expenses without my salary. So I could have already retired 😀

    I earn around double what my wife earns, so I didn’t expect that. Also, 2015 was a spectacular year for us, so no surprise here. But it also worked in 2014. In 2015 and 2015 our non-salary income would have been enough to cover our expenses. So, theoretically, my wife could have retired as well.

    But our current net worth (355k) is too low to really quit. My target number is 600k, which would give us 24k a year with a SWR of 4%. This is more or less our planned expenses in (full) retirement.

    My wife (currently) does not want to retire, so the numbers look quite okay for me leaving the corporate world. I still have to convince my wife, though. This is by far the hardest part. My current plan involves a “sprint to the finish line”. Next year I go back to full-time employment. Earning more will lead to saving more. The “conservative plan” has a target retirement date of mid 2020 (we will have our 600k by then).

    But I’m not sure if I can sustain working until then. I would rather quit in 2018 already. So, I try to generate an extra income of around 1k each month. With that I hope to convince my wife to let me retire earlier. I can do it!

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    • Financial Independence 12:01 on 2016-12-26 Permalink | Reply

      Hi EurFI, welcome to the FTE (Full Time Employees) circle. I am still truly amazed that you can cover all your expenses with not being FTE and yet, focusing on the full time job.
      If you could cover our expenses I would likely to build on that success or even better – start doing it for the other people and got my fair share from the results.
      With my $387K portfolio I managed to get $8K a year in dividends (all beit around $50 is cash and some precious metals).

      The choice is yours and I am looking forward to your posts in 2017!

      Like

      • eurfi 0:11 on 2016-12-27 Permalink | Reply

        This (covering our expenses) was only possible because of investment returns. And if I hadn’t made some mistakes in 2016, it would have been a very boring, but constantly growing year. This is one of my goals for 2017 – less volatility.
        I also have some dividend stocks (mostly REITs) – 3.3k dividend out of 50k invested (around 6.8 %). I bought OHI (9 %) for very high yield and also have CCP, quite concentrated sector risk. But your portfolio is similar (albeit concentrated in a different sector).

        Like

  • eurfi 22:18 on 2016-12-02 Permalink | Reply  

    November 2016 – net worth and expenses 

    November was the post-election month and the markets did surprise me. I did not expect this rally! In the end it was a positive month and I’m closer to my year-end goal of 360k.

    • brokerage accounts 293.0k (+1.3k)
    • ETFs 10.5k (+0.5k)
    • cash 49.9k (+3.0k)
    • alternative investments 35.2k (-0.1k)
    • taxes -30.5k
    • total 358.1k (+4.4k) [+1.2%]

    Monthly Expenses

    • January 2.8k
    • February 2.6k
    • March 3.4k
    • April 3.7k
    • May 3.3k
    • June 3.2k
    • July 2.9k
    • August 2.6k
    • September 2.9k
    • October 2.7k
    • November 2.5k

    Yeah – the lowest month of the year! Running expenses for the year are now below 36k (which is my goal).

    About this blog

    I will spend less time on this blog in the future. This means comments will take much longer to get published and my next post will be in the beginning of the new year. My previous “Escape 9 to 5” is more or less failed (at least stalled). So to be free earlier, I’m working on a new way to earn around 1k each month (which will be selling my time doing programming).

     
    • spaarolifantje 22:47 on 2016-12-02 Permalink | Reply

      Nice, you are definitely getting close to that 360k goal!

      Like

    • homoinvestor 19:51 on 2016-12-06 Permalink | Reply

      Hi eurfi!

      How are you going to sell your time? As a freelance? I’m also looking for new income streams and programming is on my skills.

      Kind regards,

      Homo Investor.

      Like

      • eurfi 22:40 on 2016-12-06 Permalink | Reply

        Yes, I found a company that pays me for each hour I code.

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        • homoinvestor 22:42 on 2016-12-06 Permalink

          Which technology? I’m a spaniard… Do they hire international people?

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        • eurfi 23:23 on 2016-12-07 Permalink

          An old, unsexy technology. I don’t want to name it.
          It is a very small shop, I doubt they would even hire another developer.

          Like

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